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Revolutionising Government ProcurementV3 Flipbook PDF
where the world does business, securely Revolutionising Government Procurement Amabel Grant, Head of Operations, Procser
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Revolutionising Government Procurement Amabel Grant, Head of Operations, Procserve
where the world does business, securely
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About Us…
www.procserve.com/about
Who is Procserve Founded in 2006, Procserve creates virtual business communities. Organisations use the Procserve Commerce Network to create eMarketplaces and trade through the cloud.
Procserve removes the major barrier to doing business electronically by connecting organisations regardless of what back office systems they use today. Currently, more than 25,000 businesses are connected and transact securely and efficiently – saving time and money.
The Procserve Commerce Network
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Seminar Theme
Within these lean times, the public sector has to look for ways of maintaining frontline services … with ever decreasing budgets. One of the ways to achieve this would be to reduce the £220bn spent annually on goods and services.
Procserve & Invapay show how new procurement technologies are helping the UK Government do more with less.
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The European Commission
More than €100bn savings per annum if all states fully switched to eProcurement
The EC strategy looks to achieve a complete transition by 2016
Public bodies have reported savings of 5 - 20%
Create and safeguard jobs by widening access to public contracts and simplifying procedures for companies, especially small and medium sized enterprises.
"It is time to act. E-procurement represents a significant untapped potential for the EU economy. It can simplify the way procurement is conducted, reduce burdens and costs, increase the participation of SMEs and deliver better quality and lower prices.“ Internal market and services commissioner Michel Barnier
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Commerce Network Concept
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The Commerce Network in action eMarketplace
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eProcurement Savings
Source: Forrester Group
Strategies for Public-Sector Investment in Procurement Applications
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Key Findings
Manage costs, do more with less, spur economic development and reduce corruption. Improvements in procurement technology have dramatically increased the usefulness of COTS solutions. Selection of procurement automation type should be based on four elements —scope (single-agency or shared-service), economic goal, presence of corruption in current procurement practices and the policy toward delegating procurement authority to individuals that do not work in procurement. Programmes that mandate usage are significantly more likely to meet expectations than those that make participation voluntary.
Source: Gartner 2010
Strategies for Public-Sector Investment in Procurement Applications
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Recommendations
Secure policy support for investment decisions.
Use COTS solution whenever possible.
No charges for suppliers maximizing supplier adoption.
Mandate usage.
Source: Gartner 2010
Strategies for Public-Sector Investment in Procurement Applications
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A Key to Success: Mandating Usage
Gartner is observing that one thing, more than any other, predicts whether or not a procurement technology programme will be successful.
Organisations that mandate usage report satisfaction with their solutions more than 80% of the time, whereas less than 25% of organisations that make participation voluntary report satisfaction with the results. This data is derived from interactions with hundreds of clients during the past four years. Source: Gartner 2010
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Compliance
Compliance drives savings Make on-contract the easiest way to spend Control price Control quality Monitor and report
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Collaboration
Aggregate purchasing across multiple organisations, departments or divisions without removing individual control.
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National Audit Office 2010 “The public sector spends £220 billion a year on goods and services. Given the potential to make significant savings, it is vital that there is much better coordination of procurement activities to ensure value for money is secured across the public sector.” Amyas Morse, head of the National Audit Office, 21 May 2010
“With all public service costs under pressure, better procurement provides an opportunity to make significant savings that don’t cut into front line services. Most councils already collaborate but, even where there is collaboration, it is not delivering all the possible benefits” Mr Eugene Sullivan, Chief Executive of the Audit Commission, 21 May 2010
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Management Information
A sharper view of pricing differentials Inform strategic sourcing Identify leverage with existing suppliers Highly accurate product and service classification
UNSPSC - The United Nations Standard Products and Services Code®
Base decisions on facts
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Shopping Basket Comparison A direct like for like comparison of prices paid for a basket of goods including Stationary, IT and three types of office equipment showed a public sector organisation saving £135.51 by using collaborative contracts - a saving of 17.35%. Procserve Management Information System
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Process Compliance
Automation and workflow Non value added work Standard, transparent and consistently executed Make process the easiest way to spend
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Met police goes live with NPIA online procurement hub
The service aims to save the police service £69m over the next six years by:
supporting collaborative working across multiple forces reducing the cost of purchases by harnessing the buying power of the police service managing suppliers better
Lee Tribe, Director of Procurement, Met Police
"The benefits for our suppliers in automating the ordering process will enable them to avoid re-keying Met orders into their sales systems and speed up the end to end process. Users within the Met have access to a greater variety of products and services and faster delivery times."
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Borough of Poole “We went through a comprehensive evaluation which considered upgrading purchase ordering in our finance system and local sector specific solutions, and decided that Procserve was the best fit as it gave us a strategic platform. Its pangovernment nature, the customers, suppliers and catalogues already on the Procserve Trading Network and the collaborative deals on the system, will make it easier for us to collaborate with wider government locally, regionally and nationally”. Liz Wilkinson, Head of Financial Services, Borough of Poole
Procurement Innovation for the Public Sector - Cash injection for the SME Sid Vasili, CEO, Invapay
where the world does business, securely
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ePayments The Facts 99% of all European businesses are SMEs
Provide 2 out 3 of the private sector jobs
9/10 SMEs = Micro enterprises < 10 employees
Primarily responsible - Wealth and economic growth, next to their key role in innovation and R&D. The mainstays of Europe's economy are micro firms, each providing work for two persons, on average. Probably one of the EU's best kept secrets!
European Commission 2012
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Technology Adoptions Technology – SME’s Best Friend?
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Technology Adoptions
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Barriers to Adoptions Trading with a wider audience
Systems
Policy
Risk
Payment
Reputation
People
Adoption & Onboarding
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Traditional Merchant Onboarding Purchase/ Rent Card Terminal
Credit approval process
Dedicated broadband line
12 Minimum 12 month Contract
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MSC/ interchange per transaction
Can take up to
3 Months
Escrow Account
3 Significant ££ investment Level 3 data capabilities
6 Terminal Supplies i.e. Paper
Maintenance Agreement
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Merchant Onboarding Complete online 10 minute registration
12 Connection to Internet Mobile or Land based
Accept Invapay
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T&C’s of use
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The Complete Supplier Picture No Joining or Subscription Fees
Focus on New Business Opportunities
Receive ePayments from any Buyer
No more Chasing For Payment
Settlement 3 days from goods delivery
Reduced administration costs
Full transaction/ financial visibility & reporting
Access supplier portal 24x7
No investment in technology
Electronic payment directly into bank account
HMRC accredited
Improved Cash Flow
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The Impact It’s not about Innovation for Innovation sake!!!! It’s about:
Significant benefits to the economy & Team GB
Visibility, Compliance & Accountability
Meeting Government targets
Economic Growth
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Summary Purchase and Pay
Public procurement can now combine the speed of eProcurement and ePayment with the robustness of fully detailed Purchase Orders Delivers a fast, secure, efficient and fully transparent purchasing process Significant boost for UK business, delivering the government’s goal of opening up procurement to a broader range of suppliers – including SMEs – and optimising prompt payment to suppliers.
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Thank You & Questions? [email protected] www.procserve.com